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Toll Brothers’ $2.5 Billion Quarter: Is Luxury Housing Still Defying The Cycle?

Toll Brothers, a luxury homebuilder in the United States, reported second quarter fiscal year 2026 results that beat expectations on both revenue and earnings, driven by strong margins and disciplined management of sales pace, price, and incentives. The company achieved home deliveries of 2,491 units at an average price just above $1 million, generating $2.5 billion in revenue, which was approximately $110 million higher than midpoint guidance. Adjusted gross margin improved to 26.2%, beating guidance by 70 basis points, while selling, general, and administrative (SG&A) expenses represented 10.3% of revenues, also better than expected. Toll Brothers’ net orders grew 7% year-over-year to 2,834 units signed in the quarter, reflecting the success of its growth strategy and geographic expansion, now involving about 459 selling communities—a substantial increase from previous years.